Bi-weekly Pay
Conversion
Overview
Fall 2012
Bi-weekly payroll implementation team
Grant Christensen, Payroll
Gabe Nwandu, Payroll
Heidie Rhodes, Human Resources
Nancy Terry, Human Resources
Sue Anderson, Human Resources
Pauline Librenjak, Accounting
David Gracey, Computing & Communications
Josh Bright, Computing & Communications
Rubyna Brenden, Computing & Communications
2
Agenda
General Information
Preparation
Transition Assistance
Summary
Q&A
3
Bi-weekly Pay Conversion Overview
GENERAL INFORMATION
4
UCPath project and deployment
UCPath = University of California Payroll,
Academic Personnel, Timekeeping and
Human Resources
Replaces multiple payroll systems with
single payroll and human resources
information system for UC
One guiding principle is to standardize and
simplify common business processes
5
Why move to bi-weekly pay?
Standardize pay practices across UC
Overtime payments more timely
More efficient and effective time reporting
Reduction in manual adjustments
Reduction in overpayments
Vacation and sick leave balances will be
current
6
Who will move to bi-weekly pay?
Non-exempt employees (hourly and
salaried)
Employees who are eligible for overtime,
shift differential, and on-call pay
Employees who report time worked, as
well as sick, vacation, compensatory
time and other leaves to nearest quarter
hour
7
Bi-weekly pay cycle details
Bi-weekly pay cycle
Pay cycle
Sunday to Saturday, two week period. Payday is 11
days after pay cycle
Paychecks per year
26
Paycheck date
Every other Wednesday
Pay for Overtime,
Shift, On Call, Etc.
Paid in bi-weekly check when earned
Pay rate
Established by hourly rate of pay
Deductions
Percentage deductions taken from all checks
Flat dollar deductions taken from 24 checks
2 paychecks per year have flat deduction holiday
8
Sunday to Saturday Example
Pay
period
begins
Pay
period
ends
Pay
period
begins
Pay
period
ends
Return to Bi-weekly Pay Cycle Details
9
How is hourly rate calculated?
Take the annual rate divided by
2088* to determine the hourly
rate.
$41,652 / 2088 hr = $19.95/hr
*2088 total annual hours = 174 hours per month x 12
months
Return to Bi-weekly Pay Cycle Details
10
Percentage Based Deductions
% Deductions Based on Pay (every paycheck)
Taxes
Retirement
Other
›
›
›
›
Federal
State
OASDI (Social Security)
Medicare
› UC Retirement Plan (UCRP) (was Defined Contribution Plan)
› 403B or 457B if % Deduction* (for example, 3% of every
check)
› Union Dues / Fair Share
* Employees elect 403B/457B as percentage (%) amount or flat amount
Return to Bi-weekly Pay Cycle Details
11
Flat Dollar Amount Deductions
Flat Deductions Taken Twice Per Month (24 paychecks)
Insurance
›
›
›
›
›
Retirement
› 403B or 457B if Flat Deduction* (for example, $100/month)
Other
›
›
›
›
›
›
Health Insurance
Life & Dependent Life
Accidental Death & Dismemberment
Supplemental Disability
Health Care/Dependent Care
Legal Insurance
California Casualty
Scholarshare
Loans – Credit Union & 403(b) loans
Transit and Parking, etc.
Garnishments
Return to Bi-weekly Pay Cycle Details
12
What are deduction holidays?
A deduction holiday occurs
when 3 bi-weekly pay periods
end within the same calendar
month.
26 bi-weekly paydays in most years
Flat dollar deductions divided across 24
paychecks
Typically 2 deduction holiday paydays per
year
Return to Bi-weekly Pay Cycle Details
13
Vacation/sick leave accrual changes
Vacation and sick leave accruals
processed every 4 weeks (2 bi-weekly pay
periods) using factors
There are 160 hours per 4-week accrual
period
The number of hours accrued per 4-week
cycle will be standard.
14
Vacation and sick leave factors
Years of Qualifying Per Hour
Service
on Pay
Status*
Approximate Maximum
Yearly
Accumulated
Earning**
Balance
Less than 10
0.057692
15 days
240 hours
10 but less than 15
0.069231
18 days
288 hours
15 but less than 20
0.080769
21 days
336 hours
20 or more
0.092308
24 days
384 hours
*Hours on pay status, including paid holidays, but excluding all paid overtime hours.
**Full time rate.
Vacation and sick leave example
A full time employee with leave code ‘A’
Monthly (table)
Biweekly (factor)
Vacation
10.000000
9.230720
Sick Leave
8.000000
7.384640
Accruals will be the same in a year because of 13
accrual cycles (26 pay periods)
9.230720 x 13 = 120 hours
16
When will bi-weekly pay begin?
January 20, 2013: Bi-weekly pay cycle begins
February 1, 2013: Last partial monthly
paycheck covering January 1 - 19, 2013
February 13, 2013: First bi-weekly paycheck
covering January 20 - February 2, 2013
February 27, 2013: Next regular bi-weekly
paycheck covering February 3 – February 16,
2013
17
Paycheck
for
December
Holiday
Pay period
ends
Pay period
begins
Holiday
18
Paycheck for
January 1 - 20
First bi-weekly
paycheck for January
20-February 2
Holiday
Next bi-weekly
paycheck for
February 3 - 16
19
Monthly Compared to Biweekly
Employee Name: Patty Payroll
Annual rate = $41,652 hourly rate = $19.95
BW Estimate reflects pay for 80 hours* (80 x 19.95 = $1596)
NOTE: Over the course of the year, you
will be paid the same gross
Monthly ESTIMATE
BW ESTIMATE
BW ESTIMATE
Pay Period: Sep-01 to Sep-30
Check Date: Oct-01
Gross Pay:
$3,471.00
Deductions:
HLTH NET HMO $72.91
PARKING PTX
$70.00
UCRP
$102.48
MEDICARE
$48.26
OASDI
$206.35
TD 403B FLAT
$100.00
FEDERAL TAX $400.17
CA STATE
$112.06
SUPPL LIFE
$4.54
DEP LIFE INSUR $3.78
AD&D INSUR
$7.20
SUPPL DIS
$30.54
ARAG LEGAL
$13.78
CX FAIR SH
$16.49
Pay Period: Sep-01 to Sep-14
Check Date: Sep-25
Gross Pay:
$1,596.00*
Deductions:
HLTH NET HMO $ 36.45
PARKING PTX
$ 35.00
UCRP
$ 36.86
MEDICARE
$ 21.58
OASDI
$ 92.26
TD 403B FLAT
$ 50.00
FEDERAL TAX
$186.50
CA STATE
$ 55.25
SUPPL LIFE
$ 2.27
DEP LIFE INSUR $ 1.89
AD&D INSUR
$ 3.60
SUPPL DIS
$ 15.27
ARAG LEGAL
$ 6.89
CX FAIR SH
$ 7.98
Pay Period: Sep-15 to Sep-28
Check Date: Oct-09
Gross Pay:
$1,596.00*
Deductions:
HLTH NET HMO $ 36.46
PARKING PTX
$ 35.00
UCRP
$ 55.86
MEDICARE
$ 21.58
OASDI
$ 92.26
TD 403B FLAT
$ 50.00
FEDERAL TAX
$183.65
CA STATE
$ 53.74
SUPPL LIFE
$ 2.27
DEP LIFE INSUR $ 1.89
AD&D INSUR
$ 3.60
SUPPL DIS
$ 15.27
ARAG LEGAL
$ 6.89
CX FAIR SH
$ 7.98
Net Pay:
$2,282.44
Net Pay:
$1,044.20
Net Pay:
$1,029.55
Bi-weekly Pay Conversion Overview
PREPARATION
21
What can I do to prepare?
Change in pay date frequency means change
in cash flow
Cash flow is about timing and amount of money
coming into your bank account and timing and
amount of money flowing out of your account
Start reviewing your monthly expenses and
the timing of your payments
Determine changes needed to payment due
dates
22
Tools to help you prepare
http://ucpath.ucr.edu/biweekly
If you do NOT have access to the Internet,
please ask your supervisor to assist you in
printing out available materials
23
Tools to help you prepare
Interested in a budget workshop?
If you are interested in
participating in a budget
workshop to help you with this
transition, please add your
name to the sign-up sheet.
24
Bi-weekly Pay Conversion Overview
TRANSITION ASSISTANCE
25
Transition assistance programs
Vacation/CTO cash-out program
Short-term (no interest) loan program
NOTE: Participation by exclusively represented employees is subject to the
collective bargaining requirements of the Higher Education Employer-Employee
Relations Act (HEERA). At this time (effective date 11/6/2012), all affected nonrepresented, UPTE, AFSCME, CUE-IBT and FUPOA employees who meet the
requirements of the UCR transition assistance programs may participate.
26
Vacation/CTO cash-out details
What is it & Who is Eligible?
Cash out of vacation leave/compensatory time (CTO) for any
career, non-probationary, non-exempt employee who is converting
from monthly to the bi-weekly pay schedule and who meets the
following criteria:
• Appointment at ≥ 50%
• Active employment status
• Sufficient Accrued Vacation/CTO available
When can I submit my request for a
vacation cash-out?
Anytime from December 3, 2012 - January 11, 2013
How many requests can be made?
One per person
How is the request made?
Complete the Transition Assistance Program Application Form –
Option A
Submit the signed form to Payroll (via e-mail @ [email protected]
or hardcopy) by 5:00 pm on January 11, 2013
When is the money received?
With the last monthly paycheck – February 1, 2013
Terms
The amount of vacation/CTO hours paid out will be deducted from
accrued leave banks
27
Short-term (no interest) loan details
What is it & Who is Eligible?
One-time, short-term, interest free loan from the
University. Any career, non-probationary, nonexempt employee who is converting from monthly to
the bi-weekly pay schedule and who meets the
following criteria:
• Appointment at ≥ 50%
• Active employment status
What are the loan limits?
Minimum = $500, Maximum = $1,000
How many requests can be
submitted?
One request per person during the program period
When can I submit my request?
Anytime from December 3, 2012 - January 11, 2013
When is the money received?
With the last monthly paycheck – Feb. 1, 2013
• No deductions or taxes will be taken
28
Short-term (no interest) loan (continued)
How do I request
the loan?
• Complete the Transition Assistance Program Application Form –
Option B
• Complete the required UCR Short-term (no interest) Loan
Promissory Note form
• Submit both signed forms to Payroll (via e-mail @
[email protected] or hardcopy) by 5:00 pm on January 11, 2013
• Payroll Services will review your application to ensure that you meet
the eligibility criteria list above and will verify that you have
completed, signed and submitted the required promissory note
What are the
terms of
repayment?
• Repayment through payroll deduction: 1/12 each payday
• First repayment will be deducted from February 27, 2013 paycheck
• Entire loan balance must be repaid by August 14, 2013
• If separated from the University before the loan is repaid, the
balance will be deducted from your final paycheck
29
Bi-weekly Pay Conversion Overview
SUMMARY
30
Summary
Review the information available and be
familiar with dates for the transition
Revisit your budget and monthly
expenses
Revise your payment due dates if needed
Request assistance if needed
31
Key bi-weekly pay conversion dates
Dec 3, 2012
1st day to request transition assistance
Jan 11, 2013
Date request for transition assistance must
be in Payroll
Feb 1, 2013
Last monthly paycheck (includes vacation
cash-out and/or loan, if requested)
Feb 13, 2013
1st bi-weekly paycheck
Feb 27, 2013
First loan repayment deducted from
paycheck
Aug 14, 2013
Loan payment deductions end
32
Website:
http://ucpath.ucr.edu/biweekly
Email help:
[email protected]
33
Bi-weekly Pay Conversion Overview
QUESTIONS?
34